Bill giving bars & restaurants alcohol law flexibility sent to governor

In the most dramatic action in many years for on-premise beer, wine, and liquor licensees (bars & restaurants) the legislature adopted H.B. 2025 on Saturday evening. The legislation will now be sent to the governor for his signature.

The original bill was introduced at the governor’s request and contained provisions adapted from emergency orders enacted by the governor during the COVID pandemic designed to help restaurant and hospitality businesses. As the bill went through the legislative process it received many modifications with input from the WV Hospitality and Travel Association and from activist restaurant and bar owners, such as Huntington’s Jeff McKay of Summit Beer Station.

McKay calls passage of the bill the single most important bill for the service and beverage industries in the last decade.

“HB2025 went above and beyond what most in the service and beverage industries had hoped for,” he said. “The passing of this bill will position these industries for not only success during the pandemic, but for years to come. I’m extremely hopeful that we can carry the momentum from this bill into the next legislative session to potentially pass some of the provisions that didn’t make the cut for the final bill.”

The bill also contains numerous other provisions impacting off-premise alcohol retailers (liquor stores, grocery stores, etc.) and beverage alcohol producers/manufacturers that Brilliant Stream will address in future articles.

Significant Provisions For Bars and Restaurants

• Allows alcohol sales beginning at 6:00 A.M. daily, including on Sundays unless the county votes to restrict Sunday sales.
• Reduces all Private Club license fees to one-third of their regular rate for 2021, and two-thirds for 2022.
• For restaurant and bar private club licensees, it permits the remote order, sale and delivery of beer, wine, and liquor drinks/cocktails initiated by telephone or through the internet. For Tavern licensees, it authorizes the remote order, sale and delivery of beer. 
• To be eligible for delivery, the beer, wine, or cocktail must be accompanied by a meal or prepared food. No minimum dollar amount required for food. (Pre-packaged food does not count). 
• No additional license fee is charged a retailer for this alcohol delivery permit. It is included with the regular private club or tavern license. The licensee must obtain a WV beer transportation permit (no charge) if using its own vehicles for deliveries.
• Requires licensee to maintain an appropriate record keeping system of all remote sales and delivery transactions. 
• Authorizes the sale of Growlers for (a) wine/cider and (b) mixed-liquor-drinks/cocktails. Up to 128 oz.with a $100 annual fee for each category. Complimentary samples allowed.
• Delivery must be in original packages or sealed containers for beer, wine, cocktails, and growlers. (All growler sales requires the licensee obtain an appropriate growler sales permit) 
• The bar/restaurant may deliver directly to customers using their own vehicles/employees or may use properly licensed third-party delivery services.
• Permits alcohol sales at outdoor dining areas and in open-air, unenclosed structures around the bar or restaurant, such as sidewalk, street, parking lot, empty lot areas, which previously had been forbidden or difficult for private clubs due to the restrictions in the current law/regs. All outdoor serving areas are subject to prior local government approval.
• Authorizes curbside delivery of alcohol that was remotely ordered. Would also appear to permit sales through an outside window or door where the customer has not entered the actual licensed premises. All deliveries of this type must be accompanied by a meal or prepared food.
• Allows private club licensees to premix liquor cocktails (think frozen daiquiri machines) and sell them for consumption on the premises and to-go or for delivery in sealed containers up to 128 oz. (one gallon).

Authorizes Third-Party Alcohol Delivery

• Authorizes licensing of alcohol delivery services, which may deliver alcohol on behalf of a WV retail licensee (restaurant/bar, grocery store, liquor store etc.)
• Sets maximum convenience fee at $5 per delivery.
• The license fee covers an unlimited number of drivers, therefore a business such as Uber Eats/Door Dash could obtain the license and all its drivers would be included, though they must file a list of all vehicles that will be used to transport alcohol.
  • Sets a $200 annual fee for the beer delivery permit.
  • Sets a $200 annual fee for the wine delivery permit.
  • Sets a $200 annual fee for the private liquor delivery permit (cocktails).
  • Sets a $200 annual fee for Private Liquor Bottle Delivery Permit

Private Club Licenses Expanded

Caterers, wedding/event centers, multi-sport complexes, private farmers markets, distilleries/wineries, and a few other categories of entities are now eligible to obtain a private club license allowing them to sell and serve liquor, wine and beer on their property or at their functions. This will help bring into legal compliance numerous events, places, and businesses that currently could not legally have alcohol sold/served (although we get the feeling that in the past this was rarely enforced). For instance, this bill would allow a licensed caterer to tell prospective customers that it can provide alcoholic beverages as part of its overall services. 

Some private club fees were lowered though most remained the same.. All private club license fees are reduced for 2021 by 67%, and for 2022 reduced by 33%.